15 JANUARY 1943, Page 2

Argentina and Chile

The Government of Argentina, which does not desire to be isolated among Latin-American countries in its insistence on neutrality, is watching Chile with some anxiety ; for feeling in the latter country is undoubtedly running more strongly in favour of a break with the Axis. Chile's attitude has never been the same as that of Argentina. She has been not unnaturally influenced by the fact that she has a long sea-board exposed to possible Japanese acticn—if the Japanese had made more progress than they actually have done. She desires also to keep in line as far as possible with

her neighbour Argentina ; though, on the other hand, she does not relish a position which differentiates her policy so radically from all the rest of Latin-America. Ex-President Alessandri has gone so far as to propose a national plebiscite on the question of breaking diplomatic relations with the Axis Powers, and there is not much doubt that a free vote would be in favour of a breach. The concern felt in Argentina is shown by the report that the Argentine President is about to meet the Chilean President for an exchange of views. The former is not without embarrassments arising from the ceaseless underground activities of the German Embassy. It has been so effectually established that the German naval attaché at Buenos Ayres, Dietrich Niebuhr, has been actively engaged in espionage, that the Argentine Government can no longer overlook the fact and has now demanded his recall as persona non grata. President Castillo, determined as he is not to break with the Axis, is for that reason all the more anxious not to condone action in such a way as to suggest that his neutrality is one-sided.